Monthly Archives: January 2017

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generating and closing leads

9 Must-Do’s to Generate and Close More Leads in Today’s World!

9 Must do’s to generate more leads in today’s world!

Marketing in it’s simplest form is buying customers. As a business owner you must know what you’re willing to spend to gain a new customer, create a budget, set goals, market, track, adjust, and market again.

  1. Determine the lifetime value of your client.

    1. Average Dollar Sale
    2. Number of times your client buys from you
    3. Average number of years your client buys from you
Average Dollar Sale $100.00
Average Number of Purchases in One Year 6
Average Number of Years We Retain Our Clients 3
Lifetime Value $1,800.00

 

  1. Determine what you are willing to spend per client.

    1. If the average lifetime value of your client is $1,800.00 would you be willing to spend $100.00 to get them in the door? Would you be willing to spend $300.00? You must determine what you’re willing to spend for a new customer.
  2. Create a budget with an allowable acquisition cost per client and set a target goal.

    1. If a marketing strategy requires a $300.00 investment and your allowable acquisition cost per client is $100.00 then your goal should be to gain a minimum of three clients. Any less than three clients and your acquisition cost just went up.
  3. Target your client.

    1. Since you know your target market, use mediums that they actively use. If you are unsure of who your target market is, stop and DEFINE YOUR TARGET MARKET!
  4. Create the offer.

    1. Be clear and specific in your strategy. Tell your client what the specific offer is.
  5. Give them a call to action.

    1. So often advertisements lack a call to action. Customers are left with basic information about a company with either no offer or instruction to get the offer.
  6. Track your leads.

    1. If your strategy isn’t generating any leads you may want to change your medium,  your offer, or your call to action. If it’s generating leads as you expected you may want to boost your marketing with the medium.
  7. Track your conversion rate.

    1. What good are leads if you don’t close them. They are absolutely no good. As a matter of fact. They are costing you time and money. If you’re not converting leads you may not have set clear expectations. Or you may just need to just get better at closing the sale. If your prospect decides not to buy ask them why. Be sure to explain that you’re collecting this information to improve your message in the future.
  8. Wash-Rinse-Repeat

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Are You Tired of Always Playing Catch Up with Your Business Finances? Stop Juggling and Start Projecting Cash-Flow Today!

Yes, cash is important. However, cash-flow is imperative! Do you find yourself always playing catch up financially? Do you seem to have more than enough cash some weeks and not nearly enough others? Are you constantly juggling your financial resources? But somehow you always seem to manage or just make it through? You’re not alone. And that can stop today!

Cash is important but cash flow is vital to the sustainability of your business!

Would you consider a business that generated $150,000.00 in revenue, had expenses of $134,000.00 (including owners draw), with an 11% profit margin and net income of approximately $16,000.00 over a 90 day period to be a financially sound and successful business? Did you answer yes? You may be right. However, you may be very wrong. Many businesses fail, not because of cash, but because of cash flow.

This business while generating $150,000.00 in cash over 90 days, did not project cash-flow and ultimately almost closed it’s doors several times within the 90 days. Thankfully, the owners had family and friends that believed in their business and provided loans to fund the cash gaps. Otherwise, the show would have been over within 3 short months.

Let me give you a very high-level brief example.

Business A generates 2,500,000.00 per year. There expenses total 2,000,000.00 per year. Half a million dollars in profit sounds great. Doesn’t it? Think again. Let’s look at Business A again from a cash-flow perspective.

Business A Generates $280,333.00 per month, every month for 12 months ($2,500,000.00 in Gross Revenue). $2,000,000.00 of the expenses are paid by September 30th of each year. By September 30th the business has only generated $1,875,000.00. As a result, this company could be out of business by September. This is an extreme example. Most businesses have income and expenses throughout the entire year. However, break this into a weekly cash-flow scenario and we could end up with the same result.

You must project cash-flow for the health AND SUSTAINABILITY of your business. Sure, you can balance your accounts. You can calculate what income and expenses you have each month. You can review your P&L and Balance Sheet. But the bottom line is when cash comes in vs when cash goes out can make or break a company very quickly. You must project it weekly. Too often businesses project monthly. That’s not good enough. Let me show you why.

The example below is a prime example of the power of cash-flow, not cash.

This business generated $150,000.00 in cash over a 90 day period. Their expenses were only $134,000.00 for that same 90 day period of time. Again, if we were looking big picture the business looks profitable. However, look at cash flow on a weekly basis and the business probably won’t succeed. This business has such swings in cash flow that it’s sustainability without a line of credit or another form of working capital, or a means to manage their cash flow, is little to none. That’s the difference in balancing your books and projecting cash-flow.

Reviewing your balance sheet or P&L will give you a snapshot of the health of your business. However, it will not give the insight to the sustainability of your business!

If you want a sustainable, healthy, and profitable business projecting cash-flow is a must!

So, project, adjust, and project again. Then wash, rinse, and repeat! Understand the financial health AND sustainability of your business! Are you ready to start projecting but aren’t sure how? Get our free 90- Day Cash-Flow Projection Workbook by emailing me at Crystelsmith1012@gmail.com!

cash flow pic

 

 

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